Operation Dragon Lady was a failed Chinese operation to put stealthy midget submarines loaded with nuclear weapons in American waters. The submarines were modified midget subs similar to the direlect sub in point look out, that were each loaded with a single Ballistic Missile. In the event of nuclear war, they were to deliver their payloads before the U.S. could get off theirs. The operation was two months in before a U.S. Navy destroyer located one off the coast of Seattle, and promptly dispatched it with depth charges. This led to a nation wide search of the U.S. waters, resulting in the destruction of most of the Subs.
In 2075 China began realizing they were not going to win the Sino-American war. Increasingly, the nuclear option was on the minds of PLA commanders as a last ditch effort to win the war. The PLA generals knew that any nuclear strike would be met with devestating retaliation within minutes. The focus of their planning was the elimination of U.S. missile silos, many of which where in or near major cities. The idea was to have fifty or more mini submarines near American missile bases, that could deploy a single medium range nuclear missile on said bases. On June 22nd, 2077 the Operation was put into action with fifty-four subs sent into American waters. However In August, the submarine named TY-131 was detected off the coast of Seattle, Washington. It was assualted by a U.S. Navy Arleigh Burke-class guided missile destroyer which used plasma depth charges to destroy the sub. This sparked a nation wide search of American waters resulting in the destruction of all but 3 of the midget subs.